NY 2nd Month Sugar Futures
NY sugar futures rallied yesterday as protracted buying pressure triggered a close on the front foot at 20.44, the highs not tested since August 2021. The RSI is rising, while %K/%D is diverging on the upside. The MACD diff is positive and diverging, confirming rising buying pressures. On the downside, a break back below the key support level of 20.00 could trigger losses back towards the 19.64 level, a break below the 10 DMA at 19.05 would confirm the outlook of lower prices in the longer term. On the upside, a close above the 20.50 level could trigger gains through 20.94 towards 21.00. Long candle body and three white soldiers’ formation point to more certainty in the bullish momentum, and a close above 20.00 would confirm the outlook for higher prices.
Ldn 2nd Month Sugar Futures
Ldn sugar futures skyrocketed in recent sessions, and yesterday, the protracted buying pressure triggered a close on the front foot at 753.10, the highest level since summer 2021. The RSI is rising, while %K/%D are diverging on the upside, both are oversold. The MACD diff is positive and diverging, outlining recent market rally. On the downside, a break back below the support level of 560 could trigger losses back towards 553.20. A break below the 10 DMA at 543.43 would confirm the outlook of lower prices in the longer term. On the upside, a break above 580 could trigger gains through trend resistance towards 590. The market rally has been strong, with three white soldiers’ formation confirming the strength of bull sentiment. We could see prices trend even higher today, confirmed by long candle bodies and low upper and lower wicks.
NY 2nd Month Coffee Futures
NY coffee futures rallied yesterday as protracted buying pressure triggered a close on the front foot at 181.70. The RSI is rising, while %K/%D is diverging in overbought. The MACD diff is positive and diverging, confirming growing buying pressures. On the upside, finding support above the 174.35 could trigger gains through 100 DMA at 179.26 towards 200 – the October high. On the downside, a break below the support level of 10 DMA at 163.88 could trigger losses back towards the trend support and 154.55. The futures’ gains have been robust gains on the upside. Strong bullish candles highlight strong appetite on the upside, but prices need to break above the 100 DMA level to confirm continued bullish sentiment.
Ldn 2nd Month Coffee Futures
Ldn coffee futures rallied yesterday, reaching October highs, and managed to close above the previous resistance of 2062 at 2078. The stochastics are rising into the overbought again, with %K/%D diverging on the upside, and the MACD diff is positive and diverging, prompting further buying pressure. We expect futures to remain supported in the near term, with near term resistance at 2100, and secondary level at 2131 if buying pressure persists. On the downside, if futures fail into 2000, we could see a break back below the 10 DMA support of 1968. We expect futures to remain elevated in the near term.
NY 2nd Month Cocoa Futures
NY cocoa futures softened yesterday after finding support above 10 DMA. The market closed at 2629. The stochastics are converging on the downside, and the MACD diff is positive and converging, suggesting we could see lower prices in the near term through support of 2600. A break below this level would bring into play the 40 DMA level at 2586, which could set the scene for trend support. On the upside, futures need to gain back above 2671 – the previous day’s high - to confirm upside momentum. The reaffirmation of support here could trigger gains towards the level at 2700; this could strengthen the trend in the long run on the upside. Yesterday’s candle points to an increased appetite on the downside, and we could see the price edge lower in the near term.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures edged lower yesterday, as moderate selling pressure triggered a close at 2007. The stochastics are rising, yet converging, with the %K tailing off in the overbought territory; the MACD diff is positive and converging. A break of the 2000 level could trigger losses through 50 DMA at 1971, with the secondary level at 1950. On the upside, a break above previous sessions’ highs at 2015 could set the scene for a test of 2050, pointing to a change of trend for more bullish momentum. Yesterday’s bearish spinning top formation points to market indecisiveness about the outlook for higher prices, and we need the futures to break support at 2000 to confirm the outlook.
